The Arrow DWA Country Rotation ETF may not be suitable for all investors. New funds have a limited performance record. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions which will reduce returns. The market price may be higher (premium) or lower (discount) than the Net Asset Value (NAV). The fund’s portfolio may underperform its benchmark and/or other asset classes. The fund’s portfolio may underperform the general equity markets, or other asset classes, with the potential for greater individual security risk, asset class risk, and higher industry concentration risk than more broadly diversified portfolios. The fund may invest in large-cap, mid-cap, and small-cap securities. Investing in small-cap and mid-cap securities may have special risks, including wider variations in earnings and business prospects than larger, more established companies. International investments may involve additional risks, including, but not limited to, currency fluctuation, accounting methods, and geopolitical instability. Emerging markets involve heightened risks related to the same factors as well as increased volatility and potentially lower trading volume. Changes in laws, domestically or abroad, could result in the inability of the fund to operate as described in the prospectus. Narrowly focused investments may be subject to higher volatility.

Arrow Funds CEO Joe Barrato Discusses How Much Investors Should Allocate to International Equities on NASDAQ's Trade Talks.

Interview originally recorded on January 23, 2018. By clicking on or copying the link above you will be leaving the Arrow Funds site and entering a third party site. Arrow Funds is not responsible for any information contained on these third party sites. Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.

Investment StrategySeeks long-term capital appreciation that corresponds generally to the performance, before fees and expenses, of the Dorsey Wright Country and Stock Momentum Index. The index is constructed pursuant to Dorsey, Wright & Associates' proprietary methodology. The index has a relative strength focus that looks for the 10 strongest performing countries among a universe of 41 countries. Once the country is identified, the index methodology is designed to identify 10 companies that demonstrate powerful relative strength characteristics within that country. The fund and the index are equally weighted and rebalanced and reconstituted quarterly.

Fund Highlights

Global Growth- momentum focus

May provide low correlation to domestic equity market

Diversification tool for traditional international portfolios (Compliments value and Cap-weighted)

May be negatively correlated within and across countries

Dorsey Wright Country and Stock Momentum Index

Foreign universe: 41 countries from the developed and emerging markets

Country stock baskets will represent the top 10 securities with highest relative strength

Security screens—company's location and economic ties will determine its country designation

Index methodology follows a strict screening process

Dorsey Wright has been capitalizing on the momentum anomaly since 1987

Momentum Effect among CountriesThe momentum anomaly says that countries with high returns in the past will continue to outperform in the near future. There have been countless studies that show the benefit of momentum strategies in U.S. and foreign markets, and momentum strategies have had consistent performance. There are fundamental reasons to explain why momentum anomalies across countries are viable. Investors should understand that price and performance of country momentum can change or may not continue. There is a natural under-reaction by the market to information, and price momentum is not impacted by such fundamental trends. Another may be behavioral biases like investor herding. The Dorsey Wright Country and Stock Momentum Index was developed to exploit the international momentum anomaly. The index was designed to find countries with high relative performance and when such performance does not persist, it has the discipline to sell. The Arrow DWA Country Rotation ETF provides investors a low cost and packaged solution to access this trading strategy.

Equal Country Rotation*

*Exposure to 10 Countries and 10 Companies within each Country.

Profile

Market Data

as of 06/04/2020

Symbol

DWCR

NAV Price

$25.23

Exchange

Nasdaq

NAV Price Change

$7.00

Inception Date

12/28/2017

Market Price¹

$23.93

Cusip

042765685

Market Price Change

$0.00

Related Index

Dorsey Wright Country and Stock Momentum Index

Premium/Discount

-1.30

Net Expense Ratio²

0.95%

Shares Outstanding

400,000

IOPV Ticker

DWCR.IV

Volume

0

Related Index Ticker

DWACSMT

Total Net Assets

$10,092,000.00

Gross Expense Ratio2

1.68%

¹Market Price or Bid/Ask Midpoint as of market close.

2The Fund's investment manager has contractually agreed to limit expenses until 12/31/2020. Before waiver and reimbursement, the Fund's expenses were 1.68%. After the fee waiver and reimbursement of 0.73%, the Fund's expenses were 0.95%.

Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.

ArrowShares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET when NAV is normally determined for most ArrowShares, and do not represent the returns you would receive if you traded shares at other times.

Nasdaq®, DWA and Nasdaq DWA
Country and Stock Momentum Index are registered trademarks of Nasdaq, Inc.
(which with its affiliates is referred to as the “Corporations”) and are
licensed for use by Arrow Investment Advisors, LLC. The Product(s) have not
been passed on by the Corporations as to their legality or suitability. The
Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE
CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE
PRODUCT(S).

3The Fund's investment manager has contractually agreed to limit expenses until 12/31/2020. Before waiver and reimbursement, the Fund's expenses were 1.68%. After the fee waiver and reimbursement of 0.73%, the Fund's expenses were 0.95%.

Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.

ArrowShares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET when NAV is normally determined for most ArrowShares, and do not represent the returns you would receive if you traded shares at other times.

*Income/Other and Total Distribution may include income, dividends, return of capital, or other forms of payment. Return of capital is considered a return of the investment principal and is not derived from net profits.

Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.

Past distributions are not indicative of future distributions. There is no guarantee a distribution will occur. Shares of funds are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

NAV and Market Price are usually calculated at 4:00 p.m. ET. Please refer to the ArrowShare's prospectus for more details on NAV determination.

DescriptionThe above chart presents information about the difference between the daily market price for shares of the ArrowShare and the ArrowShare's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the ArrowShare's NAV is calculated (usually 4:00 p.m. ET). The vertical axis of the chart shows the premium or discount expressed as a percentage of NAV. The horizontal axis indicates the number of trading days in the period covered by the chart. Each bar in the chart shows the number of trading days in which the ArrowShare traded within the premium/discount range indicated. Although market makers will generally take advantage of differences between the NAV and the trading price of ArrowShare shares through arbitrage opportunities, there is no guarantee that they will do so.

Why is there a difference between NAV and Market Price?A major reason for the difference is that timing discrepancies can exist between the NAV and Market Price (Bid/Ask Midpoint) reported above. Information is constantly flowing to and among investors, corporations, and financial institutions that affects their outlook on the financial markets and the value of securities. This process, known as price discovery, is why market prices change and evolve throughout the trading day. It is important to note that even when markets are closed, the price discovery process continues 24 hours a day, 7 days a week, 365 days a year.

Possible Timing Discrepancies:

Close of Trading Times: The NAV of the ArrowShares normally is calculated using prices as of 4:00 p.m. ET. Each ArrowShare normally trades on its respective stock exchange until 4:00 p.m. ET.

Time of Last Trade: Trading generally takes place throughout the normal trading hours for ArrowShares on the listing exchange on which it is listed (generally 9:30 a.m. - 4:00 p.m. ET). At times, many trades are placed in rapid succession. At other times, little or no trading activity is taking place. It is important to note that the date/time of the last trade (which is recorded as the Closing Price) may not take place at exactly 4:00 p.m. ET when the ArrowShares normally calculate NAV. The date/time of the last trade sometimes may occur before 4:00 p.m. ET. Thus, ongoing price discovery may result in a deviation between the price recorded as the Closing Price and the NAV of the ArrowShare shares calculated at 4:00 p.m. ET. Therefore ArrowShares generally reports market price as the bid/ask midpoint at or near market close.

Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risk including loss of principal. An investor should also consider the investment objective, charges, expenses, and risk carefully before investing. This and other information is contained in the prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Content reviewed by an affiliate, Archer Distributors, LLC.